EconPapers    
Economics at your fingertips  
 

What Do We Know About the Effects of Fiscal Policy Shocks? A Comparative Analysis

Dario Caldara () and Christophe Kamps ()

No 257, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: The empirical literature studying the effects of fiscal policy shocks using VAR models differs among two important dimensions: the identification scheme and the VAR specification. Not surprisingly the results obtained are often diverse. The aim of this paper is to test whether differences in the results can be explained by different VAR specifications and/or alternative identification strategies. To this end, we estimate a common reduced-form VAR model to which we apply the different identification approaches proposed in the literature. We find that, after controlling for specification issues, the recursive approach and the Blanchard-Perotti approach yield very similar results, while the fiscal dummy variable approach yields significantly different results.

Keywords: Fiscal Policy Shocks; VAR analysis (search for similar items in EconPapers)
JEL-codes: C32 E20 E60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-pbe
Date: 2006-07-04
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
http://repec.org/sce2006/up.9905.1140994990.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:257

Access Statistics for this paper

More papers in Computing in Economics and Finance 2006 from Society for Computational Economics Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().

 
Page updated 2018-01-15
Handle: RePEc:sce:scecfa:257